Why is Townnews-Sha Co., Ltd. ?
1
Company has very low debt and has enough cash to service the debt requirements
2
Poor long term growth as Net Sales has grown by an annual rate of 7.29% over the last 5 years
3
With a growth in Operating Profit of 23.6%, the company declared Very Positive results in Mar 26
- CASH AND EQV(HY) Highest at JPY 4,610.95 MM
- NET SALES(Q) Highest at JPY 1,307.56 MM
- OPERATING PROFIT(Q) Highest at JPY 412.27 MM
4
With ROE of 7.46%, it has a very attractive valuation with a 0.71 Price to Book Value
- The stock is trading at a premium compared to its peers' average historical valuations
- Over the past year, while the stock has generated a return of -8.93%, its profits have fallen by -11.9%
5
Consistent Underperformance against the benchmark over the last 3 years
- Along with generating -8.93% returns in the last 1 year, the stock has also underperformed Japan Nikkei 225 in each of the last 3 annual periods
How much should you hold?
- Overall Portfolio exposure to Townnews-Sha Co., Ltd. should be less than 10%
- Overall Portfolio exposure to Media & Entertainment should be less than 30%
(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Media & Entertainment)
When to exit? - We will constantly monitor the company and suggest at the appropriate time to exit from the stock
Is Townnews-Sha Co., Ltd. for you?
Low Risk, Low Return
Absolute
Risk Adjusted
Volatility
Townnews-Sha Co., Ltd.
-8.93%
-0.71
18.50%
Japan Nikkei 225
88.41%
3.12
27.27%
Quality key factors
Factor
Value
Sales Growth (5y)
7.29%
EBIT Growth (5y)
59.58%
EBIT to Interest (avg)
100.00
Debt to EBITDA (avg)
0
Net Debt to Equity (avg)
-0.42
Sales to Capital Employed (avg)
0.75
Tax Ratio
29.79%
Dividend Payout Ratio
28.37%
Pledged Shares
0
Institutional Holding
0
ROCE (avg)
17.00%
ROE (avg)
7.70%
Valuation Key Factors 
Factor
Value
P/E Ratio
10
Industry P/E
Price to Book Value
0.71
EV to EBIT
3.08
EV to EBITDA
2.82
EV to Capital Employed
0.51
EV to Sales
0.41
PEG Ratio
NA
Dividend Yield
NA
ROCE (Latest)
16.63%
ROE (Latest)
7.46%
Technical key factors
Indicator
Weekly
Monthly
MACD
Bearish
Mildly Bearish
RSI
No Signal
No Signal
Bollinger Bands
Bearish
Bearish
Moving Averages
Bearish (Daily)
KST
Bearish
Bearish
Dow Theory
No Trend
Mildly Bullish
OBV
No Trend
No Trend
Technical Movement
8What is working for the Company
CASH AND EQV(HY)
Highest at JPY 4,610.95 MM
NET SALES(Q)
Highest at JPY 1,307.56 MM
OPERATING PROFIT(Q)
Highest at JPY 412.27 MM
OPERATING PROFIT MARGIN(Q)
Highest at 31.53 %
PRE-TAX PROFIT(Q)
Highest at JPY 410.77 MM
NET PROFIT(Q)
Highest at JPY 263.66 MM
EPS(Q)
Highest at JPY 47.76
-1What is not working for the Company
DEBTORS TURNOVER RATIO(HY)
Lowest at 9.41 times
Here's what is working for Townnews-Sha Co., Ltd.
Net Sales
Highest at JPY 1,307.56 MM
in the last five periodsMOJO Watch
Near term sales trend is positive
Net Sales (JPY MM)
Operating Profit
Highest at JPY 412.27 MM
in the last five periodsMOJO Watch
Near term Operating Profit trend is positive
Operating Profit (JPY MM)
Operating Profit Margin
Highest at 31.53 %
in the last five periodsMOJO Watch
Company's profit margin has improved
Operating Profit to Sales
Pre-Tax Profit
Highest at JPY 410.77 MM
in the last five periodsMOJO Watch
Near term Pre-Tax Profit trend is positive
Pre-Tax Profit (JPY MM)
Net Profit
Highest at JPY 263.66 MM
in the last five periodsMOJO Watch
Near term Net Profit trend is positive
Net Profit (JPY MM)
EPS
Highest at JPY 47.76
in the last five periodsMOJO Watch
Increasing profitability; company has created higher earnings for shareholders
EPS (JPY)
Cash and Eqv
Highest at JPY 4,610.95 MM
in the last six Semi-Annual periodsMOJO Watch
Short Term liquidity is improving
Cash and Cash Equivalents
Depreciation
Highest at JPY 19.4 MM
in the last five periodsMOJO Watch
The expenditure on assets done by the company may have gone into operation
Depreciation (JPY MM)
Depreciation
At JPY 19.4 MM has Grown at 61.12%
period on period (QoQ)MOJO Watch
The expenditure on assets done by the company has gone into productive use which should positively reflect in the future sales
Depreciation (JPY MM)
Here's what is not working for Townnews-Sha Co., Ltd.
Debtors Turnover Ratio
Lowest at 9.41 times
in the last five Semi-Annual periodsMOJO Watch
Company's pace of selling Debtors has slowed
Debtors Turnover Ratio






